What Is Technical Debt? A Complete Guide

You buy the latest iPhone on credit. Turn to fast car loan services to get yourself those wheels you’ve been eyeing for a while. Take out a mortgage to realise your dream of being a homeowner. Regardless of the motive, the common denominator is going into financial debt to achieve something today, and pay it off in future, with interest. The final cost will be higher than the loan value that you took out in the first place. However, debt is not limited to the financial world.

Technical Debt Definition

Technical debt – which is also referred to as code debt, design debt or tech debt – is the result of the development team taking shortcuts in the code to release a product today, which will need to be fixed later on. The quality of the code takes a backseat to issues like market forces, such as when there’s pressure to get a product out there to beat a deadline, front-run the competition, or even calm jittery consumers. Creating perfect code would take time, so the team opts for a compromised version, which they will come back later to resolve. It’s basically using a speedy temporary fix instead of waiting for a more comprehensive solution whose development would be slower.

How rampant is it? 25% of the development time in large software organisations is actually spent dealing with tech debt, according to a multiple case study of 15 organizations. “Large” here means organizations with over 250 employees. It is estimated that global technical debt will cost companies $4 trillion by 2024.

Is there interest on technical debt?

When you take out a mortgage or service a car loan, the longer that it takes to clear it the higher the interest will be. A similar case applies to technical debt. In the rush to release the software, it comes with problems like bugs in the code, incompatibility with some applications that would need it, absent documentation, and other issues that pop up over time. This will affect the usability of the product, slow down operations – and even grind systems to a halt, costing your business. Here’s the catch: just like the financial loan, the longer that one takes before resolving the issues with rushed software, the greater the problems will pile up, and more it will take to rectify and implement changes. This additional rework that will be required in future is the interest on the technical debt.

Reasons For Getting Into Technical Debt

In the financial world, there are good and bad reasons for getting into debt. Taking a loan to boost your business cashflow or buy that piece of land where you will build your home – these are understandable. Buying an expensive umbrella on credit because ‘it will go with your outfit‘ won’t win you an award for prudent financial management. This also applies to technical debt.

There are situations where product delivery takes precedence over having completely clean code, such as for start-ups that need their operations to keep running for the brand to remain relevant, a fintech app that consumers rely on daily, or situations where user feedback is needed for modifications to be made to the software early. On the other hand, incurring technical debt because the design team chooses to focus on other products that are more interesting, thus neglecting the software and only releasing a “just-usable” version will be a bad reason.

Some of the common reasons for technical debt include:

  • Inadequate project definition at the start – Where failing to accurately define product requirements up-front leads to software development that will need to be reworked later
  • Business pressure – Here the business is under pressure to release a product, such as an app or upgrade quickly before the required changes to the code are completed.
  • Lacking a test suite – Without the environment to exhaustively check for bugs and apply fixes before the public release of a product, more resources will be required later to resolve them as they arise.
  • Poor collaboration – From inadequate communication amongst the different product development teams and across the business hierarchy, to junior developers not being mentored properly, these will contribute to technical debt with the products that are released.
  • Lack of documentation – Have you launched code without its supporting documentation? This is a debt that will need to be fulfilled.
  • Parallel development – This is seen when working on different sections of a product in isolation which will, later on, need to be merged into a single source. The greater the extent of modification on an individual branch – especially when it affects its compatibility with the rest of the code, the higher the technical debt.
  • Skipping industrial standards – If you fail to adhere to industry-standard features and technologies when developing the product, there will be technical debt because you will eventually need to rework the product to align with them for it to continue being relevant.
  • Last-minute product changes – Incorporating changes that hadn’t been planned for just before its release will affect the future development of the product due to the checks, documentation and modifications that will be required later on

Types of Technical Debt

There are various types of technical debt, and this will largely depend on how you look at it.

  • Intentional technical debt – which is the debt that is consciously taken on as a strategy in the business operations.
  • Unintentional technical debt – where the debt is non-strategic, usually the consequences of a poor job being done.

This is further expounded in the Technical Debt Quadrant” put forth by Martin Fowler, which attempts to categorise it based on the context and intent:

Technical Debt Quadrant

Source: MartinFowler.com

Final thoughts

Technical debt is common, and not inherently bad. Just like financial debt, it will depend on the purpose that it has been taken up, and plans to clear it. Start-ups battling with pressure to launch their products and get ahead, software companies that have cut-throat competition to deliver fast – development teams usually find themselves having to take on technical debt instead of waiting to launch the products later. In fact, nearly all of the software products in use today have some sort of technical debt.

But no one likes being in debt. Actually, technical staff often find themselves clashing with business executives as they try to emphasise the implications involved when pushing for product launch before the code is completely ready. From a business perspective, it’s all about weighing the trade-offs, when factoring in aspects such as the aspects market situation, competition and consumer needs. So, is technical debt good or bad? It will depend on the context. Look at it this way: just like financial debt, it is not a problem as long as it is manageable. When you exceed your limits and allow the debt to spiral out of control, it can grind your operations to a halt, with the ripple effects cascading through your business.

 

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Importance of Field Service Management Software for Mobile Working

Technology has been evolving at a fast pace. Changes are also happening simultaneously within different industries. Making a great difference in the business world right now is the trend of mobile working.

Thanks to platforms and tools, working while on the go is now easier and more streamlined. The field service industry also benefits from these technological advances.

Mobile technicians can now give excellent performance and do their job efficiently with no hands-on management needed.

Keep in mind that field service management is no joke. So, to achieve a smooth business and mobile worker management, you’ll need to invest in good mobile service management software.

But First, what is Mobile Working?

Mobile working is a method of working that is not tied to a single physical location.

It isn’t just about checking your emails on your phone or ringing your colleagues via Bluetooth while driving your car to the next appointment. It’s so much more intricate than that.

Effective mobile working means you’re mobilising your workers. Field technicians should have everything they need to complete their day to day work. You’re giving them their entire office in the form of a mobile device.

Mobile working, via a handheld device, allows field technicians to do the following:
● Access and input information about a work order
● Collaborate on projects
● Stay in touch with colleagues, clients and management
● Utilize effectively the different software features

Your field workers should have the support of a dynamic management tool that ensures they are sent to the job that utilises their skills effectively and efficiently.

That’s where a good field service management software shows its importance.

The Role of a Field Service Management Software

Your mobile workforce is scattered across various physical locations. You’ll need to connect with them and simultaneously manage your field service business.

Thanks to the increasing connectivity and improvement of technologies for this purpose, mobile workers can easily input and access any work order details via your chosen field service management software.

What Makes a Good Field Service Management Software?

There are 3 main points to consider when investing in a good mobile workforce management software:

1. It’s simple and familiar to use. Like we mentioned before, be sure to mobilise your field technicians – not the back-office system. Make sure your chosen app or software has a simple user interface so your workers can be on-the-go easily.

2. It works offline. Rural areas and highways can have poor connectivity. Sometimes agents will need to work in areas that have little to no network coverage or are deep down working in tunnels or around heavy machines and turbines. You don’t want your field technicians unable to complete work due to connectivity issues. Make sure to choose software that can function on their device while offline.

3. It’s flexible (and maintainable). Your field service management of choice should have real-time visibility. Flexible and improved visibility for a field worker means that they can do their best in any task. They can share or get critical information about orders and customers. This drastically improves job completion rates and customer satisfaction.

Importance of Field Service Management Software to Mobile Working

Utilize the technology that is available to you. Your mobile workforce should have the right tools so they can make sure to do their fieldwork efficiently without worrying about tedious administrative work. Any back-office task can be done quickly through a field service management software.

And that’s the most important role of a great mobile service management app — effective mobile worker efficiency.

Benefits of a Field Service Management Software to Mobile Working

● Additional revenue: By simplifying the administrative work, your field technician can even double the work order in their daily shift, meaning more profit for the business.

● Cost-cutting: The cloud-based nature of a field service management software means that your business can reduce the cost of on-site IT.
Your mobile workforce can operate from wherever they have an online connection, meaning less reliance on offices and building costs.

● Boosts overall efficiency: A mobile workforce management software allows you as a manager to monitor in real-time where they are and what they are doing. It means that problems can be identified and dealt with immediately.
Your field technician, in turn, becomes more efficient because the technology allows them a quicker response, instead of taking too long finishing administrative tasks.

Invest in a great field service management software. Check out FieldElite and see how they can help you with the following mobile working features:
• Accepts jobs in the field
• Automate appointment scheduling
• Manage scheduled jobs
• Get real-time visibility into all operations
• Have a clear and easy viewing of job locations
• Resolve field service calls faster
• Enable mobile workers to get the job done right
• Keep customers updated at every step
• Create quotations and accept payments
• Analyse efficient reports from field technicians

How Internal Auditors can win The War against Spreadsheet Fraud

To prevent another round of million dollar scandals due to fraudulent manipulations on spreadsheets, regulatory bodies have launched major offensives against these well-loved User Developed Applications (UDAs). Naturally, internal auditors are front and center in carrying out these offensives.

While regulations like the Sarbanes-Oxley Act, Dodd-Frank Act, and Solvency II can only be effective if end users are able to carry out the activities and practices required of them, auditors need to ascertain that they have. Sad to say, when it comes to spreadsheets, that is easier said than done.

Because spreadsheets are loosely distributed by nature, internal auditors always find it hard to: locate them, identify ownership, and trace their relationships with other spreadsheets. Now, we’re still talking about naturally occurring spreadsheets. How much more with files that have been deliberately tampered?

Spreadsheets can be altered in a variety of ways, especially if the purpose is to conceal fraudulent activities. Fraudsters can, for instance:

  • hide columns or rows,
  • perform conditional formatting, which changes the appearance of cells depending on certain values
  • replace cell entries with false values either through direct input or by linking to other spreadsheet sources
  • apply small, incremental changes in multiple cells or even spreadsheets to avoid detection
  • design macros and user defined functions to carry out fraudulent manipulations automatically

Recognising the seemingly insurmountable task ahead, the Institute of Internal Auditors released a guide designed specifically for the task of auditing user-developed applications, which of course includes spreadsheets.

But is this really the weapon internal auditors should be wielding in their quest to bring down spreadsheet fraud? Our answer is no. In fact, we believe no such weapon has to be wielded at all?because the only way to get rid of spreadsheet fraud is to eliminate spreadsheets once and for all.

Imagine how easy it would be for internal auditors to conduct their audits if data were kept in a centralised server instead of being scattered throughout the organisation in end-user hard drives.

And that’s not all. Because a server-based solution can be configured to have its own built-in controls, all your data will be under lock and key; unlike spreadsheet-based systems wherein storing a spreadsheet file inside a password-protected workstation does not guarantee equal security for all the other spreadsheets scattered throughout your company.

Learn more about Denizon’s server application solutions and discover a more efficient way for your internal auditors to carry out their jobs.

More Spreadsheet Blogs

 

Spreadsheet Risks in Banks

 

Top 10 Disadvantages of Spreadsheets

 

Disadvantages of Spreadsheets – obstacles to compliance in the Healthcare Industry

 

How Internal Auditors can win the War against Spreadsheet Fraud

 

Spreadsheet Reporting – No Room in your company in an age of Business Intelligence

 

Still looking for a Way to Consolidate Excel Spreadsheets?

 

Disadvantages of Spreadsheets

 

Spreadsheet woes – ill equipped for an Agile Business Environment

 

Spreadsheet Fraud

 

Spreadsheet Woes – Limited features for easy adoption of a control framework

 

Spreadsheet woes – Burden in SOX Compliance and other Regulations

 

Spreadsheet Risk Issues

 

Server Application Solutions – Don’t let Spreadsheets hold your Business back

 

Why Spreadsheets can send the pillars of Solvency II crashing down

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Energy efficiency demystified

Energy bills are all about Energy efficiency but energy efficiency management is not all about bills. Energy efficiency means reducing carbon emissions, lowering energy costs and improving the quality of life. Energy efficiency is therefore about conservation of energy in a broader perspective; in fact energy efficiency is almost becoming a moral obligation.

Through adoption of appropriate energy efficiency measures, companies can significantly bring down the overhead costs making hundreds of dollars in savings. Energy efficiency is also synonymous with a better quality of life. Taking appropriate measures to ensure proper insulation protects your premises against extreme weather conditions leading to more productivity and an improvement in the bottom line.

Improved energy efficiency means a smaller amount of carbon emissions, less pollution and a better environment.

It is now easier than ever to visually identify where your facility is wasting energy, how much energy is being wasted while tracking the progress made in reducing energy consumption by turning that detailed, raw energy-consumption data into useful charts and figures.

Having visibility of your Energy usage gives you knowledge of what power you are consuming. This helps you change energy usage behaviours and this can have significant savings and reduction in your electricity bills. Real-time electricity consumption tracking is enough prodding for you to be on the lookout for inefficient energy consumption unit’s e.g.? Heating and cooling equipment, ducts insulation of your premises or a failure of one of these components to perform as intended. Pin-pointing the problem areas is not a walk in the park but fixing it can make your building more energy-efficient and comfortable.

A wide range of solutions are now available for charting and analysing energy consumption that helps energy managers, facilities managers, energy consultants and building-services engineers. These will not only offer advice but will enable you provide tailor made solutions for your organisation by assisting you in developing a sustainable energy strategy. Our energy monitoring software is one example.?

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